Would a Yahoo, AOL Combination Make Sense?

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July 15 (Bloomberg) -- Bloomberg’s Tom Giles and Alix Steel discuss the possibility of a pairing of Yahoo and AOL and examine Yahoo’s latest offering of live concerts in conjunction with Live Nation. They speak on “In The Loop.”

Tech editor tom giles and alix steel.

Tom, let's start with you.

The twitter sphere was all a flutter last week when they saw marissa mayer and tim armstrong having coffee together.

Anytime you see two ceo's getting together at a conference like sun valley where renault a lot of big deals have come together in the past, -- where we know a lot of deals have come together in the past.

We do not have any reason to believe basic conversation is that there is anything going on.

You never want to rule anything out.

Yahoo!

Is about to come into a lot of money based on its stake in ali baba.

They have a right to sell a big chunk of that.

It is going to free up a lot of money.

We have reason to believe this could make sense.

There is recent for it.

-- there are reasons.

A lot of synergy.

You could boost your bottom line and cut costs.

They are similar businesses.

The question you want to ask is is aol where marissa and yahoo!

Need to go?

Does it get them into mobile?

Is a game changer?

A lot of it is duplicate of businesses.

Conte businessnt.

-- content business.

Aol is still very much a dial-up company.

Am i right?

There are still a lot of people with those aol.com e-mail addresses.

We think that is crazy but that is where more than half their revenue comes from.

What about yahoo!

And streaming concerts?

Today if you wanted to watch the dave matthews band play, all you have to do is go online.

It is part of a partnership announced with live nation where they will stream 365 dfaays a year, one concert a day.

For live nation, they have 23,000 concerts a year.

They want people to see their stuff.

For yahoo!, it is all about the eyeballs and the ad dollars.

Online video is the fastest-growing advertising segment of online.

In theory it would help them do that.

They have to separate themselves from youtube and apple and realnetworks to wo o -- to woo those advertising dollars.

Look, look at the live concerts and then you can have video on demand.

That's the goal here.

Does this make sense?

Video is huge.

It is growing quickly.

They need ad dollars.

Marketers came out with number saying that microsoft will surpass yahoo!

In terms of key advertising revenue metrics.

Like what?

In terms of online advertising share.

We are going to get numbers after the market from their earnings.

They are projected to do 1% revenue growth.

It is some progress.

Another period of growth after a bleak period.

It is progress but not substantial.

Are you going to watch a concert online?

When you take a look at this venture.

The success has been in the dance/easy festivals like coachella.

-- dance/music festivals like coachella.

You avergaage 35 minutes that you watch.

Compared to other streaming concerts, it's 25 minutes.

That is different than paying up to see a concert.

The viewership is growing.

Our regional has says that people view for the first minute and it drops off.

After five minutes they come back up again.

You have to beraar in mind that youtube is an established brand.

If you want video or music, people know where to go online and it is not yahoo!. tom giles, thank you for joining us and to alix steel.

We are af few moments away from the opening bell.

We have the top 10 stocks you do not want to miss.

Keep it here on "in the loop."

This text has been automatically generated. It may not be 100% accurate.

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